Chimera Investment Corporation · NYSE:CIM
Chimera Investment — Q2 2019 Earnings Presentation
17 slides from Chimera Investment's earnings presentation, Aug 8, 2019
Slide 1: Investor Presentation 2nd Quarter 2019
INVESTOR PRESENTATION NYSE: CIM 2nd Quarter 2019
Slide 2: Disclaimer
DISCLAIMER This presentation includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely
Slide 3: Chimera is a Hybrid Mortgage REIT
CHIMERA IS A HYBRID MORTGAGE REIT Chimera develops and manages a portfolio of leveraged residential mortgage investments to produce an attractive quarterly dividend for shareholders ▪ Established in 2007 ▪ Internally managed since August 2015 ▪ Total Capital $4.0 Billion ▪ Total Portfolio $27.2 Bill
Slide 4: Total Return
TOTAL RETURN Chimera has outperformed mortgage REITs and the S&P 500 since internalization of management Cumulative Total Return* 118% 110% 90% 70% 51% 50% 45% 30% 10% -10% -30% 15 15 16 16 16 16 16 17 17 17 17 17 18 18 18 18 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 5/ 2/ 2/ 1/ 0/
Slide 5: Dividends
DIVIDENDS Chimera has declared $4.6 billion in dividends since inception 700 6,000 600 5,000 500 4,000 ) ) s 400 s n n o o i i l l l l i 3,000 i M M ( ( $ 300 $ 2,000 200 1,000 100 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD Period Ending Common Dividends Preferred Dividends
Slide 6: Dynamic Investment Strategy
DYNAMIC INVESTMENT STRATEGY Chimera focuses on acquiring Residential Mortgage Loans, Non-Agency RMBS, Agency RMBS and Agency CMBS Residential Chimera acquires residential mortgage loans. Chimera utilizes leverage through a combination of securitization, repo and warehouse facilities to manage risk a
Slide 7: Portfolio Composition
PORTFOLIO 73% of Chimera's equity capital is allocated to COMPOSITION mortgage credit (1) Residential Mortgage Net Investment Analysis 17 Credit Portfolio (1) 16 Total Assets: 15.0 billion 15 Residential 14 Mortgage Agency Total 13 Non-Recourse Agency Portfolio Credit Portfolio Portfolio (Securitiza
Slide 8: Loan Portfolio Composition
LOAN PORTFOLIO COMPOSITION Chimera has acquired a unique portfolio of residential mortgage loans comprising 45% of the total portfolio Portfolio Fair Value 10% Seasoned Low Loan Balance Mortgage Portfolio Total Current Unpaid Balance $11.6 Billion 45% Total Number of Loans 133,529 33% Weighted Avera
Slide 9: The Securitization Process
1 THE SECURITIZATION PROCESS Chimera has created term-funding through securitization 2 3 $70mm Senior A Note Sold to 3rd Party $100mm $100mm Trust Principal & Interest Deposit Non-Agency Mortgage (Non-Agency RMBS Bond or Loans Collateral) Losses & Interest $30mm Subordinate B Note Retained by CIM CI
Slide 10: Securitization Activity
SECURITIZATION ACTIVITY Chimera utilizes the securitization process to create its own differentiated portfolio ▪ Chimera continues to benefit from exercising the option to call, restructure and optimize it's securitizations ▪ Chimera has completed 55 deals and securitized $31.2 billion of residentia
Slide 11: Agency Portfolio
AGENCY PORTFOLIO Liquidity in Agency Securities enables Chimera to vary it's investments based upon relative value and residential mortgage credit opportunities available in the market 14 12 2.9 3.1 3.3 10 ) 2.5 s 8 n o i l l i b ( $ 6 0.9 1.0 1.1 2.3 9.2 9.0 8.9 4 8.3 1.3 1.3 6.9 1.3 1.4 1.8 1.9 2.
Slide 12: Capital Management
CAPITAL MANAGEMENT Chimera continues to add shareholder value while diversifying its capital structure ▪ Board of Directors expects to declare $2.00 dividends per common share in 2019 5,800,000 Shares 13,000,000 Shares ▪ Chimera has raised $930 million in 8.00% Fixed Series A 8.00% Variable Series B
Slide 13: Summary
SUMMARY Chimera has assembled a unique portfolio of mortgage assets with a goal to provide high and durable income to shareholders Dynamic Investment Chimera has developed a diversified portfolio of mortgage backed securities to maximize risk-adjusted returns. Chimera's total return has outperformed
Slide 14: Appendix
Appendix We. CHIMERA SE
Slide 15: Agency MBS Portfolio Funding
AGENCY MBS PORTFOLIO FUNDING The majority of Chimera's Agency Portfolio consists of highly liquid pass-through securities Agency Securities – As of June 30, 2019 Repo Days to Maturity – As of June 30, 2019 WEIGHTED (1) CURRENT WEIGHTED SECURITY TYPE COUPON AVERAGE MATURITY PRINCIPAL WEIGHTED AVERAGE
Slide 16: Interest Rate Sensitivity
INTEREST RATE SENSITIVITY Chimera rebalanced its Agency hedge portfolio during the quarter Description - 100 Basis - 50 Basis +50 Basis +100 Basis ($ in thousands) Points Points Unchanged Points Points Hedge Book Maturities Market Value $ 12,414,897 $ 12,310,754 $ 12,154,575 $ 11,922,436 $ 11,638,67
Slide 17: chimerareit.com
chimerareit.com